The only comprehensive account of operational risk in securities settlements
Securities Operations focuses on the settlement aspects of a securities transaction. As financial analysts make a greater effort toward quantifying and managing operational risk, they are paying more attention to securities transactions in general and to the settlement phase in particular. While describing the practical issues, this book enumerates the different "back office" related risks potentially encountered throughout the settlement. Simmons also covers more advanced topics such as derivatives, trade compensation, internal allocation of funding costs, and operational performance measurement.
Michael Simmons (London, UK) is currently Head of Business Consultancy at Wilco International, a major software systems provider to the financial markets.
Over the years, financial professionals around the world have looked to the Wiley Finance series and its wide array of bestselling books for the knowledge, insights, and techniques that are essential to success in financial markets. As the pace of change in financial markets and instruments quickens, Wiley Finance continues to respond. With critically acclaimed books by leading thinkers on value investing, risk management, asset allocation, and many other critical subjects, the Wiley Finance series provides the financial community with information they want. Written to provide professionals and individuals with the most current thinking from the best minds in the industry, it is no wonder that the Wiley Finance series is the first and last stop for financial professionals looking to increase their financial expertise. |
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17 of 17 found the following review helpful:
 If your work in anyway touches the trade lifecycle - buy it.May 23, 2003
I am just about finished the book and have found it to be an excellent guide, precise and well written. As an `IT Person' who has steadily moved closer to the business over the years and hence the need to understand how things `work' it has allowed me to consolidate and confirm my understanding of the key areas. Although I have a number of years experience, particularly from the custodian side, this has allowed me to fully appreciate the full process. The examples that run throughout the book that explains the concepts presented are superb and ensure a firm understanding of the subject area
8 of 8 found the following review helpful:
Relevant to newcomers and experienced people - globallyNov 11, 2002
By Mark Mulholland
Years ago I attended an operations and settlement course developed and run by the author, Mike Simmons. It is still the best business course I have been on. On other occasions he has been vital in explaining business concepts to project teams I have been involved in, so we could fully understand the business requirements behind the software solutions. He has a natural talent in making what is often seen as complex and boring seem straightforward and interesting. Others tend to overcomplicate to either hide the fact they don't really know what they are explaining, or try to look 'clever', or fear what will happen if they pass the knowledge on. Simmons is clearly very keen for others to learn and understand and this book gives a wider audience a chance to take advantage of this. Securities Operations explains business concepts that can be applied to securities markets anywhere in the world - essential reading for newcomers to the industry and those seeking a deeper understanding of operational activities.
15 of 18 found the following review helpful:
Timely, relevant and EnjoyableDec 30, 2003
By An avid reader
As the author says in Page 414 "A major reason for writing this book is the need for IT personnel to attain adequate level of understanding.....". This book completely meets the objective. As a practicing IT professional, reading this book was a wonderful experience. It helps professionals like me to gain useful domain knowledge. I hope we have more books like this one, covering other industry sectors.
5 of 5 found the following review helpful:
Excellent Training MaterialJan 01, 2003
By Nick Bacon
This book covers all the main areas necessary for newcomers to settlement and other operational areas. The level/depth of description enables a reader to not only become aware of topics, but to understand them.I thoroughly recommend it.
12 of 15 found the following review helpful:
Comment by the AuthorDec 27, 2002
By michael simmons
Unlike the situation 25-30 years ago where the majority of investors would trade only in securities issued in their domestic marketplace, in this day and age there is a growing trend among investors to buy and sell overseas securities. Whether the investor is based in, for example, the Far East, North America, Australasia or Europe, and whether that investor trades in securities issued in New Zealand, the UK or the USA, many concepts of both trading and settlement absolutely apply. The approach I have taken in this book is to explain first principles and concepts, all of which are applicable in all marketplaces to some extent, and then to quote examples from various marketplaces. I chose not to explain the specific workings of one marketplace, as this makes it more challenging for a reader to relate those specifics to other marketplaces. Increasingly, those who work (or aspire to work) in the operations and settlement areas of brokerage houses, investment banks, institutional investors (etc.) will be required to have a broad outlook in terms of settlement and operational practices in numerous marketplaces. They will also be expected to apply known concepts to new marketplaces in which their organisation invests. In an operational sense, the modern investment organisation strives for commonality of approach across all marketplaces; by doing so its costs and risks are minimised, and its clients are serviced in a standard but efficient fashion. The facts of the matter are that each marketplace has its own operational and settlement peculiarities; every marketplace differs from every other marketplace in some respects. No two European countries operate in the same way, and Japan's practices differ from Australia's, for example. However, investing in a new marketplace should hold no fears for an investment organisation, providing its staff are aware of the types of questions to which the organisation needs answers, the internal procedures that are necessary, and the deadlines and service levels it must provide to its clients. An awareness of the concepts is therefore essential. Brokerage houses and investment banks (whether located in the US, Europe, Asia or Australasia) must be capable of responding to the needs of their client base; if their clients wish to invest overseas, the brokerage houses/investment banks must be fully aware of and in control of settlement procedures in those overseas markets. If not, operational costs can outweigh the trading profit or commission made on the trade. In these respects, all investment organisations that trade overseas are in precisely the same position. Securities Operations breaks the operational process into bite-size pieces, and additionally connects the relevant pieces together to form a complete view.
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